Chug, I got this reply, an opinion from an expert not so long ago.
In very simple terms, if MoD (or Government) contracted out Military Airworthiness Regulations to, say the CAA, the first thing CAA would do is ask "What is the design baseline for each aircraft?". MoD can't answer. Then "Resurrect the build standard so we can establish a contractual baseline". That needs huge investment and many many years. It could never get off the ground for most legacy aircraft. If CAA did accept a contract, there would be so many get out clauses necessary that it would be worthless. MoD would be so heavily liable, it would be a pointless exercise.
However, a good compromise would be to create a MAA for all emerging and future aircraft. If they acted quickly, that could encompass quite a lot, and in a few years the likes of Sea King, current Lynx, Tornado etc etc would slowly disappear. That would spread the cost pain while demonstrating something is being done.
I think this compromise would avoid MoD having to admit they have more or less ignored airworthiness for 20 years. While we'd like to hear them admit this, it's politically unacceptable and they'd be potentially tied up in litigation for decades. I think this is why they don't change the Chinook verdict. But, Nimrod is the thin end of the wedge.
Of course there is much more to consider, but the above is, I think, a good line to take which MoD may actually be thinking about now. It's an obvious option. I wouldn't be surprised if they didn't suddenly make an announcement on this.